LNG market in Europe - statistics & facts
LNG accounts for more than 40 percent of natural gas supply to Europe. Since the Russia-Ukraine war, the role of LNG in Europe’s energy industry has grown tremendously. Though countries like Spain and the United Kingdom already had a well-established LNG infrastructure, since 2022 other European countries, chief among them Germany, have begun investing heavily in terminals and regasification units. Already, European countries have become some of the world’s major LNG importing countries.
Europe currently houses 57 operational LNG import terminals, of which the majority are onshore facilities. The largest LNG import terminal is located in Milford Haven, United Kingdom, with an annual capacity of 15 million metric tons. As of 2024, the TES Wilhelmshaven terminal in Germany is the largest LNG import terminal project, with an expected annual capacity of 20 billion cubic meters.
The growing importance of LNG to the European energy market has also led to the establishment of distinct price benchmarks. Next to the European Union launched LNG benchmark, which determines price performance based on DES LNG spot prices and the Dutch TTF future price, there are distinct price assessments for the Northwest European market and Southwest European market.
Import infrastructure
Europe as a continent has historically been largely dependent on natural gas traded via pipelines, with the majority originating in Russia. However, the Russia-Ukraine war has caused great disruption to gas trade in Europe and brought the LNG market into renewed focus. Liquefying natural gas by cooling it to around minus 162 degrees Celsius allows for gas to be transported to consumer markets far away from producing sites. LNG trading is realized via shipping vessels, with the regasification process occurring at the receiving terminal. These terminals may be either onshore regasification plants or floating storage regasification units (FSRU’s) anchored at the harbor. Once regasified, natural gas enters pipeline distribution systems for end-user delivery.Europe currently houses 57 operational LNG import terminals, of which the majority are onshore facilities. The largest LNG import terminal is located in Milford Haven, United Kingdom, with an annual capacity of 15 million metric tons. As of 2024, the TES Wilhelmshaven terminal in Germany is the largest LNG import terminal project, with an expected annual capacity of 20 billion cubic meters.
Trading partners and LNG price benchmark launch
Although many European countries are reliant on LNG supplies, Russia and Norway are the only two LNG exporters on the European continent. The United States is the leading exporter of LNG to Europe, having surpassed Qatar in recent years. France receives the greatest LNG import volume of any country in Europe.The growing importance of LNG to the European energy market has also led to the establishment of distinct price benchmarks. Next to the European Union launched LNG benchmark, which determines price performance based on DES LNG spot prices and the Dutch TTF future price, there are distinct price assessments for the Northwest European market and Southwest European market.
